Legal Question in Business Law in Virginia

5 people signed to be personally liable for a line of credit loan. (no co-signers) Only 3 paid when the loan was called on by the bank.

The other 2 pretend they owe nothing, nor have got in touch with the other 3 that paid their part.

The main check was written to pay off the loan as a company, but the 3 of us have our cancelled checks as proof of who really paid the loan off.

What legal action can we take. We all feel as though we had to pay their part or risk our credit rating. Almost blackmailed into paying their part.

We did the right thing, but how can we get our money back or at least let their credit scores reflect they defaulted, and how to notify the right credit reporting agency ?

Thank you for any help on this matter.


Asked on 12/07/09, 6:03 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Each of these nonpayers is what the law calls "jointly and severally liable" for the total amounts which were paid in behalf of each and can therefore be sued

by the three of you, accordingly, for these amounts.

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Answered on 12/18/09, 1:07 pm


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